Online-quiz-testbank-Financial-Accounting

Financial  Accounting  An  Integrated  Approach  5E  1    Acct5930Quiz1Question1Theprofessionalcodeofethicsofanaccountantinvolves:1-Behavinginaprofessionalmanner2-Maintainingalevelofexpertiserequiredinordertoperformskillfully3-Followingproceduresthatwillensurethathighstandardsofworkaremet4-EnsuringthatclientsdonotbreakthelawCorrectAnswer:d.1,2,and3onlyQuestion2Avalidvariationoftheaccountingequationis:CorrectAnswer:a.Assets-Liabiities=EquityQuestion3Accountingtransactionsneedtobemeasuredinacommondenomination.Whatassumption/conceptunderliesthisprocedure?CorrectAnswer:e.MonetaryQuestion4Whichofthefollowingisnotafunctionoffinancialaccounting?CorrectAnswer:d.Toprovidebudgetsforfutureaccountingperiods.Question5OnwhichfinancialstatementwouldyoufindanitemcalledWagesExpense?CorrectAnswer:b.IncomeStatementQuestion6TheconnectinglinkbetweentheBalanceSheetandtheIncomeStatementis:CorrectAnswer:b.NetprofitaftertaxQuestion7WhichofthefollowingstatementsbestdescribesaStatementofCashFlows?CorrectAnswer:b.Itprovidesdetailsonthemovementincashbalancesduringtheyear.Question8Financial  Accounting  An  Integrated  Approach  5E  2    ThelettersGAAPstandfor:CorrectAnswer:a.GenerallyacceptedaccountingprinciplesQuestion9Whichaccountingconceptdirectlyconcernstherequirementthatfinancialstatementscontaininformationthatisusefultothosewhoaremakingdecisions?CorrectAnswer:d.RelevanceQuestion10During2009acompanymakescreditsalesof$200,000ofwhich$150,000wascollectedatyearend.Itpays$80,000incashexpensesandowes$10,000forelectricityusedduring2009.Whatisaccrualprofit?CorrectAnswer:d.$110,000Question11OnwhichofthefollowingfinancialstatementwouldyoufindanitemcalledShareCapital?CorrectAnswer:a.BalanceSheetQuestion12Whichofthefollowingstatementsaboutaccrualaccountingistrue?CorrectAnswer:b.Itrequiresthatrevenuesberecognizedintheaccountingperiodinwhichtheyoccur.Question13Thefollowinginformationisat30June2009forBushLimited:ShareCapital:$100,000Equipment:$150,000Inventory:$30,000AccountsReceivable:$20,000AccountsPayable:$30,000RetainedProfits:$80,000Cash:$10,000Whatisthebalanceoftotalassetsat30June2009?CorrectAnswer:c.$210,000Financial  Accounting  An  Integrated  Approach  5E  3    Question14Whichofthefollowingstatementsaboutfinancialaccountingistrue?CorrectAnswer:d.Financialstatementsaresummariesofalargenumberofindividualevents.ACCT5930Quiz2Question1Whichofthefollowingstatementsaboutabalancesheetistrue?CorrectAnswer:b.Abalancesheetpresentsthefinancialpositionatapointintime.Question2Whichofthefollowingstatementsaboutcontingentliabilitiesistrue?CorrectAnswer:e.Contingentliabilitiescanincludeobligationsforwhichtheoutflowofeconomicbenefitsisnotsufficientlyprobable.Question3Givenonlythefollowinginformation,whatisthebalanceofcurrentassets?Accountsreceivable:$200,000Accountspayable:$100,000Revenuereceivedinadvance:$80,000Prepayments:$50,000Inventory:$10,000CorrectAnswer:c.$260,000Question4Workingcapitalequals:CorrectAnswer:b.CurrentassetslesscurrentliabilitiesQuestion5Adebitmaysignify:CorrectAnswer:c.AdecreaseinliabilityaccountsQuestion6Achartofaccounts:CorrectAnswer:b.Isalistingofthetitlesandnumericreferencesofallaccountsintheledger.Question7Whichofthefollowingerrorswillbeabletobedetectedbyatrialbalance?CorrectAnswer:d.Ajournalentryrecordingacashsalewaspostedtothecashatbankledgeraccountbutnotthesalesledgeraccount.Financial  Accounting  An  Integrated  Approach  5E  4    Question8Acompanyreceivesapaymentfromacustomerforcreditsalesmadeinthepreviousperiod.Whatistheeffectontheaccountingequation?CorrectAnswer:d.Anassetincreasedandanotherassetdecreased.Question9Whichofthefollowingwouldbeessentialforincometoberecognisedinthefinancialstatements?CorrectAnswer:b.Theincreaseinassetsordecreaseinliabilitiesassociatedwiththeincomemustbecapableofbeingreliablymeasured.Question10ThelefthandcolumnofaT-accountismostimportantlyusedto:CorrectAnswer:c.ShowdebitsQuestion11Anassetshouldberecognizedinthefinancialstatementswhen:1.Anexchangehasoccurred.2.Itpossessesacostorothervaluethatcanbemeasuredreliably.3.Itisprobablethatthefutureeconomicbenefitsembodiedintheassetwilleventuate.CorrectAnswer:d.2and3onlyQuestion12LalorLtdhascurrentassetsof$80,000andcurentliabilitiesof$50,000.Itscurrentratiois:CorrectAnswer:c.1.6Question13Whichofthefollowingis/areanessentialrequirementforanassettoexistforaccountingpurposes?1.Theentitymustbeabletocontrolthefutureeconomicbenefitsassociatedwiththeitem.2.Theentitymustbethelegalowneroftheitem.3.Theentitymusthavepurchasedtheitem.4.Theentitymustbeabletoselltheitemforapricethatisreliablymeasured.CorrectAnswer:a.1onlyQuestion14Whichofthefollowingstatementsaboutliabilitiesistrue?CorrectAnswer:b.Liabilitiesmustresultfromapasttransactionorevent.Question15Thecorrectclassificationforthefollowingledgeraccountsis:Financial  Accounting  An  Integrated  Approach  5E  5    1.Prepaidinsurance2.Accruedwages3.Depreciation4.CostofgoodssoldCorrectAnswer:b.Asset,Liability,Expense,ExpenseQuestion16Thepurposeofledgersisto:CorrectAnswer:b.Accumulatethelargenumberoftransactionsaffe